As we see more defaults on “loans”, gold will go up. But I wouldn’t worry about buying it unless I already had a self-contained compound in the county, because we are in for one wild ride.

Hi Al and Company,
I need some reassurance. I’m all in gold and I’m watching my portfolio disappear. Are you confident that by mid 2011 that gold will be back up again? Thanks, Tom

Good podcast comments. I’m looking to buy if gold hits $1300. Check out the gold miners ETF GDXJ. You can short it or just buy on the dips. Inflation is going to be with us so gold and silver will be back up.

you should never be 100% gold. Tom bad bad call. Adjust your percentages on the rise coming.

You clearly haven;t done your research or are pretty gullible
15-20% is the accepted standard

This Gold correction is nothing percentage wise. Gold is going a lot higher. I would be worried if it went up in a straight line. With all the money printing, I cannot see how Gold cannot keep on rising — probably much higher than any of us ever imagined. I take profits occasionally on my juniors but I do not touch my core holdings until the mania starts. Then I take profits while everyone is trying to get in. This happened in 1980. It is going to happen now except the price is going much higher.

Tom: What reassurance do you need? Just look at the big picture. Does it look like the system is sustainable? I didn’t think so.

JimmyJ: You say 15-20% in gold. Where to put the rest? Bonds? Stocks? Real estate? Fortunes have always been made by identifying the big picture trend and then going all in, NOT by sheepishly diluting your holdings through misunderstood diversification. Let me put it this way: when facing a waterfall, your diversification should (if at all) be between different kind of parachutes (think silver instead of gold), not between 15% parachute and 85% no parachute.

MY GOLD STOCKS GET HIT ALOT HARDER THEN THE PRICE OF GOLD, PERCENTAGE WISE.
IVE BEEN RIDING THIS BULL FOR THE LAST 8 YEARS, UP AND DOWN WE GO , I TAKE PROFITS IN APRIL OR MAY AND GET BACK IN, IN AUGUST. MY STOMACH USED TO BE UPSIDE DOWN ON THESE CORRECTIONS, NOW I JUST WAIT THEM OUT, THEN UP, UP, UP, WE GO. MY MINING STOCKS WERE UP 62% LAST YEAR. HOPING FOR THE SAME THIS YEAR, BUT THIS IS THE WORST START OF A YEAR IN A LONG TIME. HANG ON DON’T SELL NOW! THINGS WILL LOOK ALOT BETTER BY THE END OF THE QUARTER.

Gold is done 4.8% off last months highs. MCD, a real blue chip, is down 7% from December highs and very littlementioned. Best Buy and Target are down (on weak sales).

So why out of joping on gold (silver has fallen more–although if you had it since Aug you are ahead of the game.

on 100% gold–that’s pretty high–but so is 80% (the reciprical of 20%) in US fiat.

Hi Tom Johnson,
Hey, I’m no expert, which is why I listen religiously to Al and Roger everyday. But I would suggest, as I think they would also, to divesify. It’s not a good idea to have all your eggs in one basket. Even Solomon, the wisest and richest man to ever live says somewhere in his Proverbs that you should diversify your investments 7 ways. Al and Roger have convinced me to first invest in the actual metals, gold and silver(for me, more silver) and take possession. From there you can branch out and do some other things, like mining stocks, but I’d certainly pay for expert analysis, unless you’re a pro. Don’t go it alone here or you’ll lose your shirt. I’m diversified in precious metals, some base metals, oil and NG, and uranium. Wish I had gotten in on Agriculture stocks but I’m all tapped out. Like you I’m all in, but in commodities, and I’m diversified into about 5 – 7 different areas. Just some ideas of what I’ve done and I’m happy with where I’m at. No worries. With all this fiat money printing going on, gold and silver have to go up a lot higher than where we are here. All the best.

Roger says that gold price decline is from profit taking.Well that may be partially true ,I would say that the decline price is more from manipulation from the bullion banks, which has become quite common over the years.Look at the news from last week-dollar down over 2 points, unemployment claims increasing ,PPI and CPI came in higher than expectations thus more inflation .All These things are gold positive, but our government and the banks that control the government do want to see higher gold/silver prices .So in summary last week take down was nothing more than pure market manipulation .Also china increases rates , so what that is a positive for more growth ,they are trying to control inflation-so what happens all commodities go up, stock market goes up, oil, copper all go up–all except for gold/ silver ,just a coincidence i hardly doubt it .
Profit taking-maybe but more likely manipulation by the Fed and JPM

Ecclesiastes 11:2 says,
Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth. (Diversify)
Dan

Thank you everyone. I certainly appreciate all the insights and comments. I’m on my own with investing as it’s my 401k money, and I just got laid off from my job of 20 years 3 months ago, so I get really queezy when I lose any money, as it may very well be all I have to retire on if I can’t find a new job at 58 years of age. Can anyone recommend a good money manager for gold, silver and such, or can you recommend some of the mining stocks to get involved in. I’d actually like to have someone manage my money, but all the guys I talk to tell me to get out of gold and invest in stocks and I’m not about to do that. Any help would be greatly appreciated. Thank you. Tom

Tom, Like Al keeps saying, I too am NOT a registered investment advisor, but I’ll tell you what I do so you might have a starting point for you OWN research.

I have roughly 15% in physical metal (of which 80% is in 1 oz. silver coins like American Eagle, the rest in gold). Some fraction of it I store close to home so I can easily access it in the event of a hyperinflation. You may want to check http://www.APMEX.com for coins. They seem decent (and no, I’m not affiliated with them in any way). This part is primarily for insurance and/or crisis protection purposes.

The remaining 85% I have in resource stocks. A more conservative approach may be to put more into physical metal if you can’t stomach the volatility of some of these shares. APMEX.com also offers storing metal as part of people’s 401k, but frankly I don’t know the pros and cons of that. I would caution against putting ALL your savings, whether metal or no metal, into things like a 401k or an IRA; the gov’t may be tempted to seize those funds and mandatorily convert them into Treasuries when the crisis hits the desperate stage. Argentina did that in 2001, and Hungary is doing it right now.

Among the resource stocks, I have the majority in silver stocks (First Majestic, Sabina, Silver Wheaton, Pan American Silver, Silver Standard, Apogee) and some gold, oil, rare earth, and base metal plays. In gold and oil, it makes sense to invest in a well-managed mutual fund (e.g., Tocqueville Gold) given the sheer number of companies you’d have to sort through, which could be treacherous. In silver, the list of good plays is more limited and you have a better chance of finding them out, that’s why it makes more sense to go with individual stocks here (but caveat emptor just the same).

Again, this is only what I do, and as far as you’re concerned I’m just some random dude posting a comment. You’ll have to do your own research. But it’s not as hard as it may seem. The most important thing is to know WHY you’re invested in something and then stick with it until that reason is no longer there. Good luck.

PS:
> APMEX.com also offers storing metal as part of people’s 401k

That’s IRA, not 401k.

Thanks Dom, I appreciate you taking the time to give me a starting point. Tom

Dom,
Do you know of any money management companies that invest in Gold, SIlver and REE’s? Tom

Tom, I’m not sure who would be the go-to money manager, but I think Peter Schiff at Europac offers money management with that focus. Maybe Al and Rog have suggestions, too. Again, I’m not affiliated with Europac, nor do I work in the industry myself. I only know Peter Schiff through his public appearances. But I think the guy knows what he’s talking about. He called the financial crisis years ahead of time.

Also check out Sprott Asset Management. I think Eric Sprott and his team are stellar. I’m not sure how you would invest with them in the US since it’s a Canadian firm. Can’t hurt to contact them and ask.

OK. I have a chart on the Euro on stockcharts that looks a lot like a Head and Shoulders top with a target of about 1.171. A slightly upward sloping H&S topping pattern but target is close to what Roger mentioned at 1.17.

Gold also has a tiny H&S top at the moment; target may be around $1283 perhaps? That would still be above the June high of 1265, so not even a test of the breakout point. This H&S is piddly.
http://1000gold.blogspot.com/2011/01/possible-head-shoulders-tops-in-gold.html

Sorry, Roger mentioned 1.185$ to the Euro not 1.17.